General Studies-2; Topic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.
Introduction
- The Union Budget 2025-26 aims to foster rural prosperity and resilience by increasing women’s workforce participation and supporting their entrepreneurial growth.
- This comes at a crucial time when self-employment among rural women is rising, as reflected in the Periodic Labour Force Survey (PLFS) 2023-24.
Rising Women’s Workforce Participation and Self-Employment Trends
- Periodic Labour Force Survey (PLFS) Data
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- The female workforce participation rate has increased to 40.3% in 2023-24 from 22% in 2017-18.
- The rise is primarily due to a 15.9% growth in self-employment, particularly in rural areas.
- Self-Employment: A Double-Edged Sword
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- While self-employment provides income opportunities, it is precarious and informal, lacking social security and job benefits.
- Key challenges include:
- Lack of skill training
- Limited mobility due to societal norms
- Barriers in accessing formal credit
- Heavy domestic and caregiving responsibilities
Contribution of Self-Employment to Economic Growth
- International Labour Organization (ILO) Study (2019) Findings
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- Small enterprises and self-employment contribute to two-thirds of total employment globally.
- In India, self-employment among women is mostly concentrated in agriculture, but there is a growing presence in manufacturing, services, and construction, necessitating targeted policy interventions.
- World Bank Study (2024) on Rural Women Entrepreneurs
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- Women-owned enterprises in rural India provide employment to 22-27 million people.
- Access to formal credit remains a significant challenge, highlighting the need for tailored financial inclusion strategies.
Budget 2025-26: Key Initiatives for Women Entrepreneurs and Workforce Participation
- Financial Inclusion Measures
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- ₹5.41 lakh crore sanctioned under Pradhan Mantri Mudra Yojana (PMMY) in 2023-24 for women entrepreneurs.
- New scheme to support 5 lakh first-time entrepreneurs (women, SCs, and STs) with term loans up to ₹2 crore over five years.
- Increase in budgetary allocation for women’s welfare.
- Gender allocation in the total budget rose, showing greater commitment to women’s economic empowerment.
- Strengthening Self-Help Groups (SHGs) and Rural Livelihoods
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- National Rural Livelihoods Mission (NRLM) has integrated rural women into SHGs.
- SHGs play a crucial role in microfinance, skill development, and entrepreneurship promotion.
- Skill Development and Capacity Building
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- Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to provide job-oriented training to rural women.
- Emphasis on sectoral employment, particularly in:
- Manufacturing
- Micro, Small, and Medium Enterprises (MSMEs)
- Services and construction industries
Sectoral Opportunities for Women’s Employment Growth
- Boost to Manufacturing and MSMEs
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- MSMEs employ a significant number of women, and budgetary support for MSMEs is expected to:
- Enhance women’s employment
- Promote women-led start-ups
- Provide easier access to credit and technology adoption
- The budget includes a special package covering financing, regulatory changes, and technology support for MSMEs.
- MSMEs employ a significant number of women, and budgetary support for MSMEs is expected to:
- Support for Women in Labor-Intensive Sectors
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- Focus on high-employment sectors like textiles, food processing, and rural industries.
- Policy measures to reduce informal employment and improve job security and social security coverage.
Addressing Barriers to Women’s Workforce Participation
- Overcoming Social and Economic Challenges
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- Barriers include:
- Unpaid care work and domestic responsibilities
- Mobility constraints
- Lack of digital and financial literacy
- Government Interventions:
- Encouragement of working women hubs (MSMEs collaborating to provide hostels, crèches, and senior care facilities).
- Promotion of gender-sensitive workplace policies in industries employing large numbers of women.
- Barriers include:
- Encouraging Financial Inclusion and Credit Access
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- Formalizing credit access through women-led banks and financial cooperatives.
- Strengthening digital banking services for women entrepreneurs in rural areas.
Way Forward
- Expanding Social Security and Legislative Protections
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- Extending social security benefits (pensions, maternity benefits, insurance) to self-employed women.
- Strengthening enforcement of equal pay and workplace safety laws.
- Strengthening Digital and Financial Literacy Programs
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- Expanding digital literacy to ensure greater participation in online markets and e-commerce platforms.
- Bridging the gender gap in technology adoption through targeted training programs.
- Enhancing Rural Infrastructure for Women Workers
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- Development of rural business hubs with access to:
- Coworking spaces
- Childcare and elderly care facilities
- Transportation support for working women
- Development of rural business hubs with access to:
- Long-Term Vision: Towards Sustainable Rural Employment
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- Strengthening public-private partnerships (PPPs) for skill training and employment.
- Integrating women-led businesses into global supply chains.
- Encouraging eco-friendly entrepreneurship in agriculture, handicrafts, and textiles.
Conclusion
- The Union Budget 2025-26 lays a strong foundation for rural women’s economic empowerment by increasing their participation in self-employment and entrepreneurship.
- With a multi-pronged approach involving financial inclusion, skill development, and social security, India can harness the full potential of its female workforce.
- These interventions align with the government’s vision of Viksit Bharat (Developed India) and contribute to sustainable, inclusive growth.
Practice Question:
The Union Budget 2025-26 emphasizes self-employment and entrepreneurship for women, particularly in rural areas. Critically analyze the effectiveness of self-employment as a tool for economic empowerment of women. (250 words)
